HALE COUNTY HEALTHCARE AUTHORITY

November 2011 Board Meeting: Lynch Presentation

HCHale

ounty

ospital

HCH Primary Service Area

Total Population: 18,304

33% Live Below Poverty Level (2011 APL $14,570)

Over 50% of Household Incomes are below $25,000

16.3% Unemployment Rate

5,876 Children (Under 19)

2,562 Elderly (Over 65)

9,866 Folks In The Middle

Declining Population

2011 Hospital Overview

Licensed Beds: 39 (20 in use)

Administrator: Tom Lackey

Patient Service Departments: -Inpatient -Outpatient -Emergency Room -Clinic -Home Health

Annual Visits: 40,126

Number of Employees: 122 (104 FTEs)

Doctors: Dr. Timberlake, Dr. Sibanda, Dr. Jarmon, Dr. Hwangpo, Dr. Dorsey, & Dr. Lessa

2011 Financial Highlights

Gross Operating Revenue: $16,669,204

Net Operating Revenue: $8,201,632

Income/Loss From Operations: -$102,201

Net Income: $513,851

New Investment In Medical Equipment & Technology: $661,052

Decrease In Long Term Debt: $75,000

Payroll and Benefits: $3,572,311

Uncompensated Care: $2,109,199

2011 Operational Measurements

Inpatient28%

Outpatient18%

Emergency Room36%

Clinic11%

Home Health7%

2011 Gross Revenues By Department

Swing Bed Revenues were only 2% of Gross Revenue ($383,706) so, Total SB Revnues was added to Total Inpatient Revenues

2011 Operations Measurements

Salaries, Wages & Employee Benifits

42%

Supplies and Other18%

Bad Debt25%

Interest2%

Depricia-tion &

Amortiza-tion 2%

Contract Labor & Outsourcing12%

2011 Total Expenses Breakdown

2011 Operational Measurements

3% 16%

17%

39%

24%

Number of Visits By DepartmentInpatient Outpatient Emergency Room Clinic Home Health

DepartmentsInpatie

ntOutpatie

ntEmergency

RoomClini

cHome Health

Number of Visits 1,152 6,456 7,003

15,819 9,696

2011 Operational Measurements

Inpatient Outpatient Emergency Room Clinic Home Health

$3,660,538

-$55,769

$2,005,273

$1,435,779

$1,155,811

$2,572,384

$502,461

$2,354,918

$1,431,982

$827,184

$1,088,154

-$558,230-$349,645

$3,797

$328,628

2011 Annual Profit/Loss By Department

Total Revenue: Total Expenses: Net Profit/Loss:

2011Operational Measurements

Inpatient Outpatient Emergency Room Clinic Home Health

$945

-$86-$50

$0$34

Profit/Loss Per Visit By Department

Profit/Loss Per Visit

2011 Operational Measurements

Payer Mix:Inpatien

tOutpati

entEmergency

Room ClinicHome Health

- Medicare: 50% 48% 21% 24% 81%

- Medicade: 18% 20% 39% 40% 2%

- BCBS: 7% 20% 17% 19% 6%

- Commercial: 10% 7% 4% 3% 2%

- Private Pay: 15% 6% 19% 11% 0%

Other: 0% 0% 0% 1% 9%***

PAYER MIX BY DEPARTMENT

2011 Operational Measurements

50%

18%

7%

10%

15%

2011 Inpatient Payer Mix

- Medicare: - Medicade: - BCBS: - Commercial: - Private Pay: Other:

2011 Inpatient Net Profit: $1,088,154

2011 Operational Measurements

48%

20%

20%

7%6%

2011 Outpatient Payer Mix

- Medicare: - Medicade: - BCBS: - Commercial: - Private Pay: Other:

2011 Outpatient Net Loss: -$558,230

2011 Operational Measurements

21%

39%

17%

4%

19%

Emergency Room Payer Mix

- Medicare: - Medicade: - BCBS: - Commercial: - Private Pay: Other:

2011 Emergency Room Net Loss: -$349,645

2011 Operational Measurements

24%

40%

20%

3% 12% 1%

Clinic Payer Mix

- Medicare: - Medicade: - BCBS: - Commercial: - Private Pay: Other:

2011 Clinic Net Profit: $3,797

2011 Operational Measurements

81%

2%

6%2%

9%

Home Health Payer Mix

- Medicare: - Medicade: - BCBS: - Commercial: - Private Pay: Other:

2011 Home Health Net Profit: $328,628

2011 Operational Measurements

Inpatient Outpatient Emergency Room

Clinic Home Health0

500

1000

1500

2000

2500

3000

3500

4000

Breakdown of Outpatient Radiology Tests By Department

Number of X Rays:Number of CT Scans:Number of Ultrasounds:

2011 Operational Measurements

31%

5%

38%

25%2%

2011 Laboratory Tests

Inpatient Outpatient Emergency RoomClinic Home Health

DepartmentsInpatie

ntOutpatie

ntEmergency

RoomClini

cHome Health

Number of Tests 19,504 3,017 23,776

16,088 1,005

Take Aways

Work with Tom, Betty and Libby to develop a new internal accounting/record keeping system to keep records for all 5 service departments to keep accurate records for better management- I.E. NEW ELECTRONIC MEDICAL RECORD SYSYTEM!!!!!!!!!!!!!!!!!!!!!!

Work with Betty Kay to develop program with Hale County Health Department (Debra Gentry) and local attorneys to assist and qualify eligible Medicaid/SSI community members- DEVELOP NEW POSITION FOR QUALIFYING LOW INCOME/DISABLED PATIENTS

Work with Vivian and Doctors on education program for Lab and Radiology expenses to cutout unnecessary expenses- BUILD WORKING RELATIONSHIP WITH DOCTORS AND OUTPATIENT SUPPORT SERVICES

Develop new programs to increase Inpatient daily census- GERATRIC PSYCHATRIC UNIT IN HIGH DEMAND AND MONEY FROM MEDICARE

Questions To Be Thinking About

How does the Hale County Hospital get and spend its money?

Is the Hospital is good financial health? What types of government policies and

regulations affect the Hospital’s financial health?

What are the market trends and how are these forces shaping the decisions of the Hospital Leadership?